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on the cosmetics and personal care market opportunities in the EAEU Region, comprised of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
The global cosmetics and personal care market has shown strong resilience in recovering from the challenges posed by the COVID-19 pandemic and is expected to grow steadily with a CAGR of 4.82% by 2026. The Eurasian Economic Union countries account for a significant share of this market, due not only to the population of giants such as Russia, Belarus, and Kazakhstan, but also the sustained use of beauty products by the union’s large population.
Figure 1: EAEU Overview Snapshot
The Concept of Beauty in the EAEU
The beauty industry in most EAEU countries is extremely profitable due to cultural and societal particularities. Most women in these countries tend to give a high level of importance to the regular use of make-up and self-care products to gain confidence and cultivate self-love. This makes the beauty industry robust even amid conflicts and economic crises. Such a widespread trend has led to the rise of beauty and cosmetics companies, and the rapid increase in the number of local distributors over the years.
Market Growth in EAEU
The cosmetic and personal care markets are expected to grow in all of the EAEU member-countries. However, the countries with the highest projections are Armenia and Kyrgyzstan, due to more rapid economic development and income growth.
Political instability has recently disrupted the industry in Russia, forcing foreign companies out of the country and leading to a 14% decline in the size of the cosmetics market in the second quarter of 2022. However, the decrease in Russia has coincided with growth in the other EAEU member states, owing to a large inflow of Russian citizens.
Figure 2: Largest cosmetics, perfume and personal care remailers in Russia
The Rise of Digital Platforms
The digitalisation pushed by the pandemic has resulted in the rapid expansion of online sales. More than half of the women in Russia aged between 18 and 40 years continue to buy cosmetic and personal care products in online stores. This has incentivised retailers to focus on the improvement of their online purchasing experience through personalisation.
While digital channels are relatively established in Russia, Belarus, and Kazakhstan, they are only starting to spread in Armenia and Kyrgyzstan, providing an opportunity for potential investments.
Photo by Alina Grubnyak from Unsplash
How Chameleon Pharma Consulting Group Can Help You Expand Your Business Internationally
Contact us if you want to expand your business in the EAEU or any other region. With the expertise amassed from more than 150 international projects and 22 regulatory experts around the world, CPC Group offers:
- Systematic product and country analysis;
- Systematic local partner identification;
- EAEU GMP audit and registration.
Feature picture: Photo by Amy Shamblen from Unsplash
